The lending environment since the subprime mess has been rapidily changing. The latest changes are to something called the Real Estate Settlement and Procedures Act, and began to take place on January 1st, 2010.

This act should prove to be a good thing for Saint Louis home buyers.  Loan originators are now being required to clearly disclose key loan terms and closing costs that are associated with a loan. 

RESPA also outlaws kickbacks that increase the cost of settlement costs.  The whole purpose of RESPA is to help Saint Louis homebuyers be better shoppers in the homebuying process.

HUD’s website also has a great FAQ page that answers many of the questions buyers have about the good faith estimate and so forth.  I highly recommend going to their site and reading up on the topic before you contact a lender so that you will know what to expect from a lender.  This will help you keep the lender honest.

For any real estate need, don’t hesitate to contact STL Real Estate.  Our last blog entry was about  how there is no more seasoning requirement for FHA Loans.  We also have written past sell my house fast in St. Louis tips as well that you may find useful.